McBride for Business Blog

Dealing with Start-up Costs

May 9, 2017 // R. Shawn McBride // No Comments »

One of the biggest challenges in business is matching revenues and expenses. When the market responds to what a business offers, we see the business owner make tremendous profits and build assets.

But you don’t get there suddenly. In the areas of thought leadership and intellectual property, the person usually has a very refined message and a very refined offering that has a following behind it. People grow to love the message, but that takes time. It doesn’t happen overnight in physical asset businesses either. It takes a long time to build a customer base, to build a following, to have people know you exist, what you do, and what you do well.

Matching revenues and expenses is particularly challenging in the early, difficult years of a business. Expenses will be high relative to revenues. You will build up assets tangible and intangible: Your brand name, your trade name, your intellectual property, past experiences and customer lists. But it takes time.

So how do you work through this? I believe the key is to be realistic. You need to know your early years are going to be years of high expenses. Perhaps even losses. And you need to remember you’re building the asset that’s going to pay off in the long run. So plan. Make sure you understand how the greater picture comes together. Build a budget. Be ready for those expenses. Build a plan to cover those expenses. Some people rely on savings. Some get part-time jobs. Others turn to relatives or banks for loans. A realistic budget is a must. You need to know that early in a business, expenses may exceed revenues. In fact, they may greatly exceed revenues. That’s okay. That’s part of the process. But to survive and make it, you need a realistic plan.

What’s your plan? What have you done to make it through the start-up phase? How are you dealing with the fact that revenues and expenses don’t always match? Join us in the comments below and let us know about your experiences.


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This posting is intended to be a tool to familiarize readers with some of the issues discussed herein. This is not meant to be a comprehensive discussion, and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique. Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Valentina Jori.

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (, gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at or (214) 418-0258.

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Posted In: Business, Management, Strategy

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